First Property! 2/1.5 Townhome House Hack | Davison MI

[Lance Blight]

Investment Info:

Townhouse buy & hold investment in Davison.

Purchase price: $112,500
Cash invested: $29,000

This is my first purchase! I found a beautiful townhome to house hack just outside downtown Davison MI and scooped it up.

Listed at 110,000, offered 112,500 with me keeping some furniture and they accepted.

I've moved in with two of my friends and with them here, my housing expenses are now around 200 bucks a month. I could've moved in some others for a bit higher rent but I'll take the hit to the cash flow if it means I live with someone I know.

What made you interested in investing in this type of deal?

House hacking has interested me for a LONG time. Even if this is as far as I go into REI (it won't be), I am very excited to have no housing expenses to free up cash for other endeavors.

How did you find this deal and how did you negotiate it?

Found it about 6 hours after it was posted on the MLS, listed at $110,000. Realtor (shoutout Bradley Labrie!) took me through the next day. We made an offer of $112,500 on the way home from the showing and the seller accepted.

How did you finance this deal?

Conventional financing. $89,600 loan at 3.75%. $22,900 down and a bit more to close brought closing costs to just over $29,000.

How did you add value to the deal?

None yet. I plan on a hard-wired gas grill on the deck, installing a heating vent in the somehow ventless basement, and that's really about it.

What was the outcome?

So far, so good. I've moved in with two roommates who pay a combined $900. It brings my housing expenses to about 200 bucks a month. Once football season is over and I cancel my online cable it will come down even more.

Lessons learned? Challenges?

Move fast. It's a crazy market right now and I had to move fast to secure this place. Have your pre-approval in place, have a team ready, and ask for help from that team as much as you need it.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Bradley Labrie 100%. I was recommended him by a friend of mine and I also really liked the fact that he is an investor himself.

I thought Lindsay Hunt at Icon Mortage in Flint did pretty well. I don't have anything to compare it to but I had a decent amount of unemployment in my recent history and she made the numbers work. I'd go there again.